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Setting up a license agreement:An Italian University perspective

CRUI - WIPORoma, 28.03.06

Giuseppe Conti

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3. Parties

4. Recitals

5. Definitions

6. Grant of the license

7. Fees

8. Obligations of licensee

9. Market introduction and Quality control

10. Development & Defense of IP

11. Warranties, liability…

12. Confidentiality and Term

13. Applicable law, jurisdiction

Table of contents

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between

Politecnico di Milano,address…, represented by ….(hereinafter the "Polimi" or “Licensor” or the “University”)

and

AZIENDA srl,address….,represented by….(hereinafter “Aziena” or "Licensee")

(hereinafter all together the “Parties” or each one a “Party”)

Parties

Don’t forget all data and check who is going to sign

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WHEREAS, Licensor owns intellectual

property rights ..TITLE, all of which shall

be licensed under the terms of this

license agreement ("Agreement");

WHEREAS, the invention …was made

in the course of research at Politecnico

di Milano by NAMES ( “Inventors”) …;

WHEREAS, the Inventors are

employees of Polimi, and they assigned

all of their rights to the University

WHEREAS, Licensee is desirous of

obtaining certain rights from University

for commercial development…

Recitals

Describe the IP history, the negotiation activities and whatever useful to make a clear picture of the agreement

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AffiliateConfidential informationContractual IPRsContractual YearDown payment(Exclusive) licenseFieldMarketMinimum royaltyNew IPObject of the licenseLicensed PatentsPatent costsPiece royaltyTermTerritory

Definitions

Define all things in order to avoid misunderstandings…especially what in red

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Royalty-bearing, worldwide Exclusive License

No extension to IP improvement

Right to use the IP for its own non-commercial purposes..

Territory :all countries of the

world

Ok sublicense with consent and same obligations In any case

Grant of license

Pay attention to keep the use of IP and to regulate sublicensees

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Down payment unatantum Piece royalty every contractual year,

from licensee and sublicensees

Minimum royalty how much and when

Sales figures, notification, accounting

Payment when, deadlines..

Obligation to allow audit

Fees

Right trade off between cash and royalty

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IP cost maintenaince but NOT mgm Or

Also direct payment with high penalty

Best effort in development and commercialization

Penalty or agreement changes if milestones fail

Obligations of Licensee

Take care about your IPBe sure your licensee is doing the best

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Responsibility of licensee (including bearing costs)

References about university IP in technical documents

No references for commercial purpose

Responsibility for Quality control (also for sublicensees)

Market Introduction; Advertising

Bad experience in advertising

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Research done by licensor

Research done by licensee

Research jointly done

Information of IP violationnotify infringmentagree to pursue infringmentequally bear costs

Assignment of IP by licensor

Development and defense of IP

Very important to regulate new IPand infringment actions

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Representations by licensor:is the owner of assigment by inventorshas not granted to third partiesto Licensor’s knowledge no IPRs are

infringing any third parties IPdoes not warrant for manufacturing

Idemnification for violating provision…

Licensor not liable for damages resulting from manufacturing…

Licensee liable also for sublicensees

Representations and Warranties; Liability; Indemnification

NO warranties of IP validityNo liability for production

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Restrictions on disclosure

In force till 31.12.09 + renewal 2 years

Extraordinary termination by licensornon fulfillment of obligations, license, fees, maintenancepayment obligationsbreach of agreement

Extraordinary termination by licenseeloss of any IPbreach of agreement

Consequences of termination

Confidentiality, Term

Be careful on datesNo reimbursment in case of Invalid IP

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Applicable Law:agreement italian LawIP related to territory in action

Jurisdiction1° choice: court of Milano2° choice: court of Munich

Notification:Licensor addressLicensee address

Severability

Applicable law and jurisdiction

An Italian university must refer to Italian Law, easier and cheaper